The Gym Group UK Portfolio: Principles and Practices of Marketing
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This portfolio evaluates the marketing principles and practices used by The Gym Group, a UK-based fitness club. It includes an analysis of the marketing mix elements, STP analysis, strategic decisions, and relevant marketing theories. The report also discusses the effectiveness of the marketing efforts of the company.
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Principles and practices of marketing
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Table of Contents INTRODUCTION...........................................................................................................................3 MAIN BODY...................................................................................................................................3 Marketing mix elements in UK operations to reinforce its positioning within the last three years.............................................................................................................................................3 Marketing mix of The Gym Group..............................................................................................5 STP analysis of The Gym Group.................................................................................................9 Strategic decisions and relevant taught theories in marketing efforts of The Gym Group..........9 Effectiveness of marketing efforts.............................................................................................11 CONCLUSION..............................................................................................................................12 REFERENCES..............................................................................................................................13
INTRODUCTION The process of marketing is the significant function for an organisation and is the broader concept that includes research, product design and development, promotion of products or services. The principles and practices of marketing are concerned with the marketing ideas that are used by a business in order to evolve effective marketing strategies. Principles of marketing are those on which promotional strategies are designed. Practices and principles of marketing helps an organisation in introducing products or services of the company to its customers. Within this report, The Gym Group is a UK-based organisation that is taken into consideration to demonstrate various prospects of this portfolio(Ayestarán, 2021). This report involves critical evaluation on using various elements of marketing mix which are used by the company in its business operations of United Kingdom. Moreover, strategic decisions along with the relevant theories in marketing efforts of organisation are also going to be discussed in this portfolio. Furthermore, there will also be a critical evaluation on the effectiveness of marketing efforts of the respective company. MAIN BODY About the company The Gym Group is a fitness club within the United Kingdom and was listed on the London Stock Exchange in the year 2015. The organisation was founded in the year 2007 by John Treharne and the first site of this company was in the West London. The respective organisation has around 160 gyms having 668000 members in total. Some of the sites of The Gym Group were acquired from Lifestyle Fitness and EasyGym. The Gym Group offers health as well as fitness facilities of higher qualities at low cost (Bhatt, 2022). The vision of the respective organisation is “To have a high performance level, diverse as well as engaged manpower that love what they do. The organisation is an inclusive bunch and all people come altogether in order to provide exceptional services to members and clients and to fellow teammates”. Marketing mix elements in UK operations to reinforce its positioning within the last three years Positioning is referred to the concept of marketing that helps in creating boundaries that states what the business is requiring for marketing their products as well as services. At positioning stage, marketing department of The Gym Group develop a favourable influence of
products as well as services based on their potential customer-base. It is only possible through using different elements of marketing mix that consists of product, price, place and promotion. Positioning in products:Main motive of product positioning is totally supported by marketing mix. The Gym Group is positioning its services within the market-place according to the expectations of market share. Marketing mix facilitate organisation in making an analysis of services that are provided by company and also analyses that services offered by organisation are according to the perceptions of customers or not(Bush, Bell and Middlewood, 2019). Then it positioned services of company in same way. Positioning in price:The tool of marketing mix perform very huge amount of research that are associated with the psychology of the pricing. The Gym Group is offering its services of superior quality at higher prices. Therefore, they are positioning their services with the greater values because of greater value of the brand and no compromises within the quality of the services. Positioning in place:Within Gym industry, it is not easy for the players to reach out to their potential customers. For this purpose, The Gym Group has to choose the most effective approach in order to reach out to its market share. The tool of marketing mix facilitates the company in making an analysis of the locations where the organisation can offer its services. The Gym Group that operates 190 gyms across the United Kingdom analysed revenues got increased and thereby profitability within the company. Positioning in promotion:The promotion component of the marketing mix is referred to the advertisements as well as performance of another promotional activities together with the group of people. This element of the marketing mix helps The Gym Group in identifying the target market as well as introducing effectiveness within the promotional activities(Donthu and et.al., 2021). Within past three years, The Gym Group has introduced a new marketing campaign in order to encourage as well as empower the teenagers that are from the age group of 16 to 18 years old. This is done for them so that they can take their first step towards working-out within an objective to improve fitness of teen along with tackling exam anxiety.
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Marketing mix of The Gym Group The marketing strategy of The Gym Group analyses the organisation with the model of marketing mix that includes 4Ps(Duan and Agalakova, 2019). The Gym Group is a fitness club within the UK and is offering its health as well as fitness facilities of greater qualities and at low cost. The company is making use of this kind of tool for combining tactics as well as strategies in
order to promote the brand awareness along with enhancing the sales volume. The marketing mix of The Gym Group is discussed as below: Product:This is considered as heart of marketing mix because all operations of marketing mix begin with a product or a service. The Gym Group has a wide variety of exercise equipments such as strength training as well as cardiovascular equipments. The organisation also provide certified and personal trainers to each person in order to act as a guide for the particular programs(Hajoary, 2018). The respective company provides classes of exercise for the groups that involves Pilates, Aerobics, Yoga, Latin Dance, Group Cycling, Power Yoga, Boxing Studio, Basketball Court and many more. Price:The Gym Group is considered as a world-recognised health and fitness chain with the superior quality equipments as well as training programs. The company adopted a premium pricing strategy in order to offer its services because it has a faith that its services of superior qualitydeserve the premium prices. In order to attractmore customers, the organisation is offering discounts to its new customers such as rebate for its first few months. Prices of athletes are higher for the normal customers because they need more formal training. Place:It is defined as physical distribution or place deals along with the transfer of ownership of products or services from manufacturer to market share. In context to The Gym Group, the organisation is having around 160 gyms and its first site was in West London. The organisation is following direct channel of distribution in which the customers of the company are directly taking health as well as fitness services from the business. Promotion:This element of marketing mix includes various methods through which a product or a service of the company can be promoted or advertised in order to capture a large number of customers within the market place. This strategy helps the organisation like The Gym Group in achieving higher level of sales volume as well as profitability within the business(Hamilton, 2019). The respective organisation is using various promotional tool for advertising its different health as well as fitness services such as social media, online and offline marketing, digital marketing, etc. that would help company in gaining a wide number of market share. The Gym Group is also organising
promotional campaigns to promote and advertise its high quality services to its potential customer-base. Promotional mix and activity: Advertising Advertising is related to the stimulation of demand of the product and services in the market with the use of different types of tools and techniques(Key, Czaplewski and Ferguson, 2019). Advertisement is one of the most important aspect of the business which helps to attract the customers towards the company. The gym group is one of the fitness gym chain which operate
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their business 24 by 7. It is very important for the management of group that they used effective advertisement to promote their services in the market. There are different types of advertisements are present in the market which can be used by management such as television advertising and many more. Public relations and publicity The business of gym is one of the growing business of the world under which the public relations plays a important role in the success of the organisation. It is essential for the managers of company that they develop effective relations in the market which helps the company to increase their visitors in the gym(Linda Wasche, 2021). Publicity is related to unpaid advertisement of the company which is done due to happening of any controversy by the media coverage. Sales promotion It is related to those tool of the marketing under which the company has provide free gifts and extra benefits on the sale of their product and services in the organisation. It is one of the successful method of marketing which can be used by the management of Gym group. The management of the group can provide the track suit on the admission on any customer in the gym. This initiative of the company not only increases the admission of the customers but also increases the loyalty of customers towards the company. It is very important for the managers to advertise their sales promotion scheme in the market. Personal selling It is one of the most important method of marketing under which the company has appoints different types of employees in the organisation which hasreached to the houses of customers and makes advertisement of their product andservices in front of their customer. The management of gym group can also used this method to advertise their services. It is essential for them to appoints large number of employees and makes them able to convey the features of the product(Listrova, Matviienko and Solomyna, 2020). The employees are provided proper training so that different types of skills can be developed inn their personality. Direct marketing It is related to those market which the management of the organisation has used mail services in marketing oftheir product and services. It is very important for the management of The Gym group that they develop list of the potential buyers and used them in their marketing.
These mail addresses can be used by the management to advertise the features of their services which they provide to their customers. STP analysis of The Gym Group The model of STP helps the organisation in identifying the best as well as the most attractive target market for satisfying the needs and wants of the potential customers. In context to The Gym Group, the three stages of STP model are explained as under: Segmentation:Within this stage, the company segments the market into different categories and parts that states profitable, actionable as well as accessible along with having potential growth(McLaughlin, McLaughlin and McLaughlin, 2018). It includes different market segments like age, location, behaviours, etc. In relation to The Gym Group, the company uses a mix of age group as well as location segmentation strategy for targeting its potential market share and fulfilling their requirements. Targeting:At this stage, the organisation targets the best and the most attractive market segments among the different segments of the segmentation stage. In context to The Gym Group, the company has targeted age group of 18 to 45 years old people. It tends to diverse the segmentation when it comes to customers with different taste as well as preferences. Positioning:This is last stage of STP model and helps an organisation in differentiating its products and services from its competitors that are available within the market place. In context of The Gym Group, the company should use the promotional strategies of social media platforms like Facebook, Twitter and Instagram, digital marketing, offline marketing through print media and many more. Strategic decisions and relevant taught theories in marketing efforts of The Gym Group Strategic decisions intends to provide a competitive edge to the businesses and make efforts for changing overall direction as well as scope of the organisation. These decisions are significantfortheorganisationastheyhelpincreatingsustainableaswellashealthy environment of business(Odlin and Benson-Rea, 2021).The process of framing strategic decisions involve different steps that are to be taken into consideration by the respective organisation in order to overcome the problems or issues within business. In order to develop the process of strategic decision-making, the administration of The Gym Group are required to follow these different steps that are given as follows:
Defining problems:It is first step at which managers of The Gym Group identify problems that are occurred within the organisation. It is significant to define the problems because by overcoming these issues the company can gain competitive advantages also. Gathering information:This is the second step in which the administrators of the company concentrates on accumulating information or data in relation to the problems that are discussed in above step(Raciti, 2022). Information can be gathered through makingconnectionswithdifferentstakeholdersofthebusinesslikeemployees, customers, suppliers, shareholders an other people of The Gym Group. Developing and evaluating alternatives:Managers of The Gym Group can develop different alternatives for the purpose of solving the problems that are occurred within the business. These managers can take the suggestions from its workforce, customers and many other people. This facilitates in gaining new thoughts that are crucial for the business organisation. After evolving the alternatives, administration of the company is required to examine those options for selecting the best which is suiting their needs. Selecting best operation and its execution:The Gym Group is needed to adopt the best operation that is crucial for initiating the most attractive operation within workplace. Administrators of company are required to get all members in order to initiate strategic decisions because they can impact operations of business. Monitoring:At this stage, superiors of The Gym Group are required to monitor and control strategies in order to check whether they are effectively employing or not within workplace. Marketing theories There are various kinds of marketing theories that facilitates the company in the process of attaining organisational goals and objectives and some of these theories are explained as below: Porter's Generic Theoryhelps in providing competitive benefits to the organisation and such type of model consists of three strategies. The description of this model is given as follows in context to The Gym Group: Cost leadership:The key objective of such strategy is to develop competitive edges for the business and it also helps in facing competitors. This strategy allow The Gym Group
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in increasing profit margins along with an aim of reducing overall business cost that provides opportunities to them in enhancing customer-base. Differentiation:It assists company like The Gym Group in differentiating its services from those of the rivalries within market (Rusko, 2018). The company can adopt new technologies or making changes within their offers. Focus strategy:The main focus of this strategy is on declining overall business cost along with differentiating organisation's services from services of its competitors. It can be adopted by managers of The Gym Group in order to gain competitive advantages over competitors. Ansoff Matrixis another model that analyse different marketing strategies to attain business growth. This model helps the company in taking decisions about actions that can be taken as per market scenario. Explanation of different marketing strategies in given as under in relation to The Gym Group: Market Penetration:In context to The Gym Group, existing services of company are introduced in existing markets to enhance market share. Company has to adopt new strategies like promotional strategies, reducing service price, etc. to gain new customer- base. Product development:According to this strategy, new services of The Gym Group are introduced within existing markets. Organisational managers should focus on research and development process to expand service variety. This process helps managers in understanding perceptions of market share and designing innovative solutions. Market development:The Gym Group can enter into new markets along with their existing services and can expand market geographically or in new market segments (van Scheers, 2018). By using highly updated technology, the company follow such strategy to extend business operations in new market. Diversification:As per this strategy, The Gym Group can enter with its new services in new markets. But this strategy involves higher risks as both services and markets are new. However, risk can be lessen by diversifying its health and fitness services from those of its competitors that assists company in achieving greater profitability.
Effectiveness of marketing efforts Marketing efforts are considered as organisational resources that are dedicated by it for fostering goods and services. Companies like The Gym Group make these efforts for enhancing awareness of services or products to its potential customers to increase profitability. Marketing reach expansion:It assists in ensuring effectiveness of marketing efforts and is significant for market expansion. By making such efforts The Gym Group can expand its business in new regions along with customers recommendations and frame successful services. Sales performance:It helps The Gym Group in its business growth and success though evaluating marketing effectiveness(Yngfalk and Yngfalk, 2020). Increment in service offerings results in enhancing profitability of company and depicts positive sign of marketing efforts of organisation. The company is required to consider changes within sales through price deviations. Customer responses:This is a reaction given by organisations to queries and actions of market-base. Managers of The Gym Group can take responses through online mode and customer click rate which allow them in revealing business performance. Efforts that are made online provides business opportunities through receiving responses from market share. CONCLUSION From above explanation of the report, it has been concluded that marketing concept is associated with different business activities that are adopted by the company in order to enhance its market share. Within this existing portfolio, the tool of marketing mix has been explained in detail along with the positioning of its 4Ps in context to the given organisation. Moreover, there has been also a description on the concept of strategic decisions in which different steps of taking such decisions have been mentioned. Along with it, various kinds of marketing models also have been explained within this portfolio that helped the business in achieving its objectives and goals in an effective manner and also facilitated it in chasing competitive benefits over rivalries in market. Furthermore, marketing efforts effectiveness has been discussed within this portfolio involving different ways that assisted company in achieving its business growth and success.
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